COB-RGB

 

 

 

 

 

Council Agenda

 

 

 

13 March 2019

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 13 March 2019

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 13 March 2019, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

Statements or decisions made at Council meetings or briefings should not be relied on (or acted upon) by an applicant or any other person or entity until subsequent written notification has been given by or received from the City of Busselton. Without derogating from the generality of the above, approval of planning applications and building permits and acceptance of tenders and quotations will only become effective once written notice to that effect has been given to relevant parties. The City of Busselton expressly disclaims any liability for any loss arising from any person or body relying on any statement or decision made during a Council meeting or briefing.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

1 March 2019


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 13 March 2019

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 5

2....... Attendance. 5

3....... Prayer. 5

4....... Application for Leave of Absence. 5

5....... Disclosure Of Interests. 5

6....... Announcements Without Discussion.. 5

7....... Question Time For Public. 5

8....... Confirmation and Receipt Of Minutes. 5

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 27 February 2019. 5

Committee Meetings. 5

8.2          Minutes of the Finance Committee Meeting held 21 February 2019. 5

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 6

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 6

11..... Items brought forward for the convenience of those in the public gallery. 6

12..... Reports of Committee. 7

12.1        Finance Committee - 21/02/2019 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 31 JANUARY 2019. 7

12.2        Finance Committee - 21/02/2019 - BUDGET AMENDMENT REQUEST / REVIEW... 30

13..... Planning and Development Services Report. 40

14..... Engineering and Work Services Report. 41

14.1        PROPOSED PERMANENT ROAD CLOSURE - PORTION OF DUNN BAY ROAD, DUNSBOROUGH.. 41

15..... Community and Commercial Services Report. 45

15.1        MARKETING AND EVENTS REFERENCE GROUP MEETING OUTCOMES. 45

16..... Finance and Corporate Services Report. 51

16.1        COUNCILLORS' INFORMATION BULLETIN.. 51

17..... Chief Executive Officers Report. 53

18..... Motions of which Previous Notice has been Given.. 53

19..... urgent business. 53


 

 

20..... Confidential Matters. 53

20.1        Amendments to kerbside recycling contract

This report contains information of a confidential nature in accordance with Section 5.23(2(c) and Section 5.23(2(e)(iii) of the Local Government Act 1995, as it contains information relating to a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting and a matter that if disclosed, would reveal  information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government

21..... Closure. 53

 


Council                                                                                      5                                                                     13 March 2019

 

1.               Declaration of Opening and Announcement of Visitors

2.               Attendance 

Apologies

Approved Leave of Absence

 

Cr Bennett

3.               Prayer

4.               Application for Leave of Absence  

5.               Disclosure Of Interests

6.               Announcements Without Discussion

Announcements by the Presiding Member 

7.               Question Time For Public

Response to Previous Questions Taken on Notice 

Public Question Time For Public

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 27 February 2019

Recommendation

That the Minutes of the Council Meeting held 27 February 2019 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 21 February 2019

RECOMMENDATION

 

That the minutes of the Finance Committee meeting held on 21 February 2019 are noted.

 

 

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

10.             QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION)

11.             Items brought forward for the convenience of those in the public gallery


Council                                                                                      7                                                                     13 March 2019

12.             Reports of Committee

12.1           Finance Committee - 21/02/2019 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 31 JANUARY 2019

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Financial Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director Finance and Corporate Services  - Tony Nottle

VOTING REQUIREMENT:

 

ATTACHMENTS:

Attachment a   Statement of Financial Activity - Period Ending 31 January 2019

Attachment b    Investment Report - Period Ending 31 January 2019  

 

This item was considered by the Finance Committee at its meeting on 21 February 2019, the recommendations from which have been included in this report. 

 

PRÉCIS

 

Pursuant to Section 6.4 of the Local Government Act (‘the Act’) and Regulation 34(4) of the Local Government (Financial Management) Regulations (‘the Regulations’), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted/ amended budget.

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 31 January 2019.

 

BACKGROUND

 

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis; and are to include the following:

 

§   Annual budget estimates

§   Budget estimates to the end of the month in which the statement relates

§   Actual amounts of revenue and expenditure to the end of the month in which the statement relates

§   Material variances between budget estimates and actual revenue/ expenditure/ (including an explanation of any material variances)

§   The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position)

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting of 25 July 2018, the Council adopted (C1807/138) the following material variance reporting threshold for the 2018/19 financial year:

 

 


 

“That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2018/19 financial year as follows:

 

·    Variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/ Statement of Financial Activity report, however variances due to timing differences and/or seasonal adjustments are to be reported on a quarterly basis; and

Reporting of variances only applies for amounts greater than $25,000.”

 

STATUTORY ENVIRONMENT

 

Section 6.4 of the Act and Regulation 34 of the Regulations detail the form and manner in which a local government is to prepare financial activity statements.

 

RELEVANT PLANS AND POLICIES

 

There are no plans or policies directly relevant to this matter.

 

FINANCIAL IMPLICATIONS

 

Any financial implications are detailed within the context of this report.

 

LONG-TERM FINANCIAL PLAN IMPLICATIONS

 

Any long term financial implications are detailed within the context of this report.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Leadership’ and more specifically Community Objective 6.1 - ‘Governance systems, process and practices are responsible, ethical and transparent’.

 

RISK ASSESSMENT

 

Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of the monthly Financial Activity Statement report is a control that assists in addressing this risk.

 

CONSULTATION

 

Consultation is not applicable in relation to this matter.

 

OFFICER COMMENT

 

In order to fulfil statutory reporting requirements, and to provide the Council with a synopsis of the City’s overall financial performance on a full year basis, the following financial reports are attached here to:

 

§   Statement of Financial Activity

This report provides details of the City’s operating revenues and expenditures on a year to date basis, by nature and type (i.e. description). The report has been further extrapolated to include details of non-cash adjustments and capital revenues and expenditures, to identify the City’s net current position; which reconciles with that reflected in the associated Net Current Position report.

 

§   Net Current Position

This report provides details of the composition of the net current asset position on a full year basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

 

§   Capital Acquisition Report

This report provides full year budget performance (by line item) in respect of the following capital expenditure activities: 

·   Land and Buildings

·   Plant and Equipment

·   Furniture and Equipment

·   Infrastructure

 

§   Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and also associated interest earnings on reserve funds, on a full year basis.

 

Additional reports and/or charts are also provided as required to further supplement the information comprised within the statutory financial reports.

 

COMMENTS ON FINANCIAL ACTIVITY TO 31 January 2019

 

The Statement of Financial Activity for the period ending 31 January 2019 shows a better than expected Net Current Position “Surplus” of $18.8M being $9.8M higher than year to date budget (YTD budget) of $9M.

 

The following summarises the major variances in accordance with Council’s adopted material variance reporting threshold that collectively make up the above difference:

 

Description

2018/2019
Actual

2018/2019
Amended
Budget YTD

2018/2019
Amended
Budget

2018/19
YTD Bud Variance

2018/19
YTD Bud Variance

 

$

$

$

%

$

Revenue from Ordinary Activities

 

Operating Grants and Subsidies

2,469,786

2,103,095

4,166,540

17.44%

366,691

Other Revenue

705,564

216,241

362,981

226.29%

489,323

 

 

Expenses from Ordinary Activities

 

Materials & Contracts

(9,265,579)

(10,834,439)

(18,952,210)

14.48%

1,568,860

Utilities (Gas, Electricity, Water etc.)

(1,275,713)

(1,498,277)

(2,569,240)

14.85%

222,564

Depreciation on non-current assets

(13,017,739)

(11,277,448)

(19,070,922)

-15.43%

-1,740,291

Insurance Expenses

(713,890)

(583,050)

(698,808)

-22.44%

-130,840

Other Expenditure

(1,795,000)

(2,729,313)

(4,795,009)

34.23%

934,313

 

 

Non-Operating Grants, Subsidies and Contributions

2,368,043

10,068,122

32,443,772

-76.48%

(7,700,079)

Adjustments for Non-cash Revenue & Expenditure

 

Depreciation

13,017,739

11,277,448

19,070,922

-15.43%

1,740,291

Donated Assets

(42,000)

(5,000)

(8,365,000)

-740.00%

(37,000)

(Profit)/Loss on Sale of Assets

(72,306)

(18,075)

(47,560)

-300.03%

(54,231)


 

Capital Revenue & (Expenditure)

 

Land & Buildings

(662,907)

(10,984,567)

(17,902,816)

93.97%

10,321,660

Plant & Equipment

(1,394,023)

(3,048,000)

(6,880,100)

54.26%

1,653,977

Furniture & Equipment

(189,613)

(502,094)

(883,640)

62.24%

312,481

Description

2018/2019
Actual

2018/2019
Amended
Budget YTD

2018/2019
Amended
Budget

2018/19
YTD Bud Variance

2018/19
YTD Bud Variance

Infrastructure

(11,460,748)

(21,352,808)

(37,380,261)

46.33%

9,892,060

Proceeds from Sale of Assets

594,785

786,750

1,045,950

-24.40%

(191,965)

Proceeds from New Loans

0

3,150,000

3,150,000

-100.00%

(3,150,000)

Advances to Community Groups

0

(150,000)

(150,000)

100.00%

150,000

Transfer to Restricted Assets

(798,314)

(319,662)

(551,000)

-149.74%

(478,652)

Transfer from Restricted Assets

5,227,880

7,497,540

14,423,922

-30.27%

(2,269,660)

Transfer from Reserves

654,988

3,205,333

26,666,211

-79.57%

(2,550,345)

 

Revenue from Ordinary Activities:

 

YTD actual income from ordinary activities is $1M more than expected when compared to YTD budget with the two items meeting the material variance reporting threshold being;

 

1.    Operating Grants, subsidies and Contributions is $367k over YTD budget due to timing differences associated with funds being received from DFES for fire prevention and bushfire risk management $158k, various reimbursements $33k and funds recovered from the City’s insurance the old butter factory $72k, 

2.    Other Revenue is $489k better than YTD budget.  This variance is due to better than expected returns on sale of scrap metal $186k. IT lease buybacks additional income of $324k which is offset by additional expenses in the IT leasing account 3381.

 

Expenses from Ordinary Activities

 

Expenditure from ordinary activities, excluding depreciation, is $1.436M less than expected when compared to YTD budget with the following items meeting the material variance reporting threshold.

 

Materials and Contracts:

The main items affected are listed below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD $

Finance and Corporate Services

 

10250

Information & Communication Technology Services

(545,240)

10000

Members of Council

(29,966)

10251

Business Systems

(24,539)

10500

Legal and Compliance Services

57,526

 

 

 

Community and Commercial Services

 

10380

Busselton Library

45,054

10590

Naturaliste Community Centre

49,194

10591

Geographe Leisure Centre

50,502

10600

Busselton Jetty Tourist Park

68,637

 

 

 


 

Planning and Development Services

 

10980

Other Law, Order & Public Safety

20,918

10820

Strategic Planning

31,822

10931

Protective Burning & Firebreaks-Reserves

34,349

Cost Code

Cost Code Description / GL Activity

Variance
YTD $

11170

Meelup Regional Park

83,455

10830

Environmental Management Administration

90,348

 

 

 

Engineering and Works Services

 

 

 

 

12620

Rural-Tree Pruning

(99,399)

B1401

Old Butter Factory

(78,831)

M9996

Roads   Sundry Overhead/Consumables

(57,280)

M9995

Roller & Grader Hire

(45,064)

G0030

Busselton Transfer Station

(42,047)

M0005

Ludlow-Hithergreen Road

(31,938)

G0031

Dunsborough Waste Facility

(30,352)

R0821

Avignon Park (Provence)

23,401

F9999

Footpaths Maintenance

26,004

11300

Sanitation Waste Services  Administration

33,453

R2001

Tree Planting - Urban Verges / Policy NOM. No. 05/06: 24

34,269

12600

Street & Drain Cleaning

34,524

R0820

Almond Green Park (Provence)

34,842

A6004

Pedestrian Bridge (Port Geographe)

37,331

G0034

External Waste Disposal

37,767

B1000

Administration Building- 2-16 Southern Drive

42,119

B1514

Asbestos Removal & Replacement

48,745

G0033

Green Waste

49,145

G0032

Rubbish Sites Development

58,331

11101

Engineering Services Administration

68,448

11301

Regional Waste Management Administration

70,000

G0010

Domestic Recycling Collections

74,110

A9999

Miscellaneous Bridge Maintenance

78,726

R0004

BSN. Foreshore Precinct (not including Skate Park)

80,339

M9999

Road Maintenance Bal Of Budget

217,113

11160

Busselton Jetty

452,041

 

 

Utilities:

There is an overall variance in utility charges of $222K with the major variances being electricity $71k and water $143k. This variance is spread over 358 individual line items with an average variance of only $620 per item.

 


 

Depreciation:

There is an overall variance in depreciation of $1.740M, it should be noted that this is a non-cash item and does not impact on the City’s surplus position.  The variance can be attributed to the fact that Fair Valuation of infrastructure assets was completed post budget adoption and the increase in valuation was unable to be included in the 2018/2019 budget.

 

Insurance:

There is an YTD variance in insurance costs of $131K, this is of a timing issue only.

 

Other Expenditure:

There is an YTD variance in other costs of $934K, considered a timing issue only.   The main items affected are listed below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD

Finance and Corporate Services

 

10618

Winderlup Court Aged Housing

35,081

10700

Public Relations

40,403

10151

Rates Administration

46,079

10000

Members of Council

62,906

Community and Commercial Services

 

10547

Iron Man

(79,169)

10536

School Chaplaincy Programs

23,317

10548

Half Iron

26,950

10530

Community Services Administration

83,117

11156

Airport Development Operations

875,000

Planning and Development Services

 

10805

Planning Administration

29,219

Engineering and Works Services

 

B1223

Micro Brewery - Public Ablution

70,000

G0042

BTS External Restoration Works

(172,636)

 

Non-Operating Grants, Subsidies and Contributions:

Non-Operating Grants, Subsidies and Contributions are less than YTD budget by $7.7M with the main items impacting on the above result being the timing of the receipt of funding which is also offset with less than anticipated expenditure at this time:

 

Cost Code

Cost Code Description

Variance
YTD

Finance and Corporate Services

 

10239

Contributions - Public Art (Percent for Art)

(827,641)

10240

Contributions - Contribution to Works

(93,390)

 

 

 

Community and Commercial Services

 

10900

Cultural Planning - Donated Assets

37,000

C6099

Airport Development - Project Expenses

(5,838,126)

 

 


 

Planning and Development Services

 

B9109

Hithergreen Building Renovations

(68,886)

B9112

Ambergate Bushfire Brigade Shed

(269,932)

 

 

 

Cost Code

Cost Code Description

Variance
YTD

Engineering and Works Services

 

C3168

Busselton Foreshore Jetty Precinct

(308,221)

F1018

Dunsborough Cycleway CBD to Our Lady of the Cape School

(105,419)

C0049

Port Geographe Marina Car-parking

(100,191)

S0051

Causeway Road / Rosemary Drive Roundabout

(91,669)

S0064

Peel Terrace (Stanley Pl/Cammilleri St Intersection Upgrade)

(61,113)

S0035

Strelly Street / Barlee Street Roundabout

(55,000)

S0068

Georgiana Molloy Bus Bay Facilities

114,500

 

Capital Expenditure

As at 31 January 2019, there is a variance of -61.80% or -$22.18M in total capital expenditure with YTD actual at -$13.707M against a YTD budget of -$35.887M.

 

The airport development makes up for $10.996M, Busselton Tennis Club – Infrastructure $1.245M, Plant and Equipment $1.653M, Council Roads Initiative projects $1.491M, Eastern Link - Busselton Traffic Study $1.554M, Dunsborough Land Purchase Parking $1.3M, Main Roads projects $1.337M, Parks, Gardens and Reserves $816K, Sanitation Infrastructure $619K, Beach Restoration $435K, Busselton Senior Citizens $430K, Dunsborough Cycleway CBD to Our Lady of the Cape School $380K, Furniture and Equipment $312K, Fire Prevention – Land Purchase Biddle Road $200K, Busselton Jetty Tourist Park Upgrade $214K, Beach Front Infrastructure $72K,  GLC - Pool Relining $50K, Energy Efficiency Initiatives (Various Buildings) $58K and Major Projects Busselton Foreshore $890K.

 

These items of under expenditure also assists in explaining the above current YTD shortfall in Non-Operating Grants.

 

The attachments to this report include detailed listings of the following capital expenditure (project) items, to assist in reviewing specific variances.

 

Investment Report

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

As at 31st January 2019 the value of the City’s invested funds totalled $76.43M, down from $79.36M as at 31st December. The decrease is due to the withdrawal of funds from the 11am account to meet standard operating costs.

 

During the month of December four term deposits held with three different institutions totalling $11.0M matured. All were renewed for a further 115 days at 2.56% (on average).

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) decreased by $3.0M with the funds being utilised to meet standard operating costs.

 

The balance of the Airport Development ANZ cash account remained steady. The term deposit held at the WATC for the Airport Development project matured, and was renewed for a further 30 days at 2.02%.

 

The RBA left official rates on hold during January and February. Future movements remain uncertain at this point.

 

Chief Executive Officer – Corporate Credit Card

Details of monthly (January) transactions made on the Chief Executive Officer’s corporate credit card are provided below to ensure there is appropriate oversight and awareness of credit card transactions made.

 

Date

Amount

Payee

Description

07-Jan-19

$1,199.02

BJ McDonald & QSA (Quest Perth)

* Accommodation - AICD Course CEO

21-Jan-19

$77.95

Easyflowers Adelaide

Flowers – staff

24-Jan-19

$1,215.82

QANTAS Airways LTD

Coastal Council Conference – Cr. McCallum

23-Jan-19

$715.30

Trybooking – Town of Vic Park

* Conference Booking Fee – LGCOG CEO

 

*Funds debited against CEO Annual Professional Development Allowance as per employment Contract Agreement

 

+ Allocated against CEO Hospitality Expenses Allowance

 

CONCLUSION

 

As at 31 January 2019, the City’s financial performance is considered satisfactory. 

 

OPTIONS

 

The Statements of Financial Activity are presented in accordance with Section 6.4 of the Act and Regulation 34 of the Regulations and are to be received.  Council may wish to make additional resolutions as a result of having received these reports.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Not Applicable.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the period ending 31 January 2019, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations

 


Council

15

13 March 2019

12.1

Attachment a

Statement of Financial Activity - Period Ending 31 January 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council

29

13 March 2019

12.1

Attachment b

Investment Report - Period Ending 31 January 2019

 


Council                                                                                      30                                                                  13 March 2019

12.2           Finance Committee - 21/02/2019 - BUDGET AMENDMENT REQUEST / REVIEW

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Finance and Corporate Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director Finance and Corporate Services  - Tony Nottle

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

 

This item was considered by the Finance Committee at its meeting on 21 February 2019, the recommendations from which have been included in this report. 

 

PRÉCIS

 

This report seeks recommendation of the Finance Committee to Council for the approval of budget amendments as detailed in this report.  Adoption of the Officers recommendation will result in no change to the City’s current amended budgeted surplus position of $0.

 

BACKGROUND

 

Council adopted its 2018/2019 municipal budget on Wednesday, 25 July 2018 with a balanced budget position.

 

Since this time Council has been advised of certain funding changes that have positively impacted the original budget and Council is now being asked to consider budget amendments for the following key areas/projects:

 

1.    Waste Fleet – Bin Cleaning

2.    Busselton Foreshore Redevelopment and Tourism Accommodation Precinct

3.    Recognition of Income – Stronger Communities Program

4.    Aged Housing Refurbishments

5.    Port Geographe Finger Jetty Replacement

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act 1995 refers to expenditure from the municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

 

RELEVANT PLANS AND POLICIES

 

There are multiple plans and policies that support the proposed budget amendments.

 

FINANCIAL IMPLICATIONS

 

Budget amendments being sought will result in no change to Council’s budget surplus position of $0. 

 

LONG TERM FINANCIAL PLAN IMPLICATIONS

 

There are no Long Term Financial Plan implications in relation to this item.

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Leadership’ and more specifically Community Objective 6.1 - ‘Governance systems, process and practices are responsible, ethical and transparent’.

 

RISK ASSESSMENT

 

There is a risk to the City, as there is with all projects undertaken, that the final cost could exceed budget. If this looks to be the case Council will be notified so a suitable offset / project scope back can be identified.

 

CONSULTATION

 

No external consultation was considered necessary in relation to the budget amendments.

 

OFFICER COMMENT

 

The Officer recommends the following requested budget amendments to the Finance Committee for consideration and recommendation to Council.

 

1.    “Waste Fleet – Bin Cleaning”

 

The City has procured public bin cleaning services and engaged various contractors over the past 5 years.

 

Despite the contract being awarded to three separate bin cleaning business over that time, none of them has delivered the services to an acceptable standard. Issues included low reliability of the service provided by contractors, poor quality in terms of bin cleanliness and difficult coordination with the City’s rubbish collection services (e.g. bins left out of enclosures for longer times than necessary).

 

When investigating the options for bin cleaning in this current 2018-19 year, and as part of the ongoing review of waste management and resource recovery services, the City has looked at the possibility of buying a bin cleaning system (comprised of a ute-mounted bin cleaning machine) and engaging its own existing staff to do the cleaning, as a possible alternative to contracting the services out.

 

Cape to Cape Bin Cleaning, one of the contractors previously engaged for the job, are now going out of business and have proposed to sell their second hand bin ute-mounted cleaning machine at a $18,000 (Ex GST) price, which compares to a $32,000 (Ex GST) for a new machine.

 

City officers have trialled the machine in question over a one month period and are satisfied that it meets the requirements for the job and allows to achieve a high standard of cleanliness with good labour productivity.

 

As a result of that trial we forecast an annual net saving of approximately $12,000 per annum, comparing the observed contractor performance over the last few years with the achieved performance of our own staff during the trial.

 

Also as importantly, bringing the service in-house is expected to allow full coordination between the bin cleaning and the rubbish collection operations, and for a consistent bin program to be developed and effectively implemented.

 

In addition to purchasing the bin cleaning machine for $18,000, in house bin cleaning services will require a utility to be setup with the ute-mounted bin cleaning machine.

 

The Finance Committee meeting held on 17/1/2019 expressed support for this proposal.

 

A budget amendment is now necessary to allow for the City to purchase the bin cleaning machine and to retain one of the operations services utilities (that would otherwise be traded in as part of the regular fleet replacement program).

 

Planned Expenditure Item

 

Officers propose that the 2018/2019 adopted budget be amended to reflect the following funding changes, shown in Table 1.

 

Table 1:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Expenditure

 

 

 

 

528-11402-7723-0000

Community Amenities (Waste disposal)

1,927,000

20,000

1,947,000

 

 

 

 

 

Income

 

 

 

 

528-11402-1770-0000

Proceeds from Sale of Asset

-55,000

20,000

-35,000

528-11402-1771-000

Profit on Sale of Assets

55,000

-20,000

35,000

Equity Transfer

 

 

 

 

Reserve

Reduction in Transfer to Waste Management Facility and Plant Reserve

1,579,702

-20,000

1,559,702

 Net Total 

3,506,702

0

3,506,702

 

2.    “Busselton Foreshore Redevelopment and Tourism Accommodation Precinct ”

 

The City was previously successful in securing $4,500,000 in funding for the Busselton Foreshore Redevelopment Tourism Accommodation Precinct Project, with the Financial Assistance Agreement signed 13 June 2016.

 

The City wrote to the Department of Primary Industries and Regional Development on 8 January 2018, (copy attached), requesting that the accumulated interest on the grant funds be attributed to further works within the project area.  The request was for the City of Busselton to be allowed to utilise the accumulated interest towards a Toddler Play Space which is located centrally within the project area.

 

On the 21 March 2018 the Department of Primary Industries and Regional Development responded to the City of Busselton’s request stating in part the following (copy attached):

 

 “In light of significant pressures on the State Budget, the Department is unable to support the requested expenditure of interest on the playground facility.

 

Rather, as discussed when you met with the Minister for Regional Development on 3 February 2018, an alternate use for the interest is supported which would see funding provided to Busselton Jetty Incorporated’s (BJI) proposal to construct a safe swimming area at Busselton Jetty.

 

The Minister for Regional Development has advised of her support for the provision of financial assistance subject to BJI being successful in their application for Building Better Regions funding. As such, and in order to help facilitate delivery, it is requested that the City of Busselton grant $50,000 of the interest accrued on the Busselton Foreshore Redevelopment project to BJI.”

 

The response from the Department further stated:

 

“The remaining interest earned on the Busselton Foreshore Redevelopment project will need to be returned to the State to assist with budget repair”

 

Further to the above, City officers have spoken with the Department and it is evident that should the City of Busselton not agree to facilitating granting $50,000 of the interest accrued on the Busselton Foreshore Redevelopment project to BJI, all interest will be required to be returned to the State Government.

 

The Finance Committee and Council previously considered the above request with the following Council Resolution being the outcome:

 

 

Planned Expenditure Items

As the Final Financial Assistance Agreement Variation has now been completed and a formal Agreement has been signed with Busselton Jetty Incorporated Officers seek to amend the 2018/2019 Budget to give effect to the above previous Council Resolution with the amendments shown in Table 2.

 

Table 2:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Income

 

 

 

 

Equity Transfer

Restricted Assets – Interest on Government Grants

-80,000

-22,888

-102,888

Expenditure

 

 

 

 

B9600

Old Lighthouse

80,000

-80,000

0

Grant/Donation

Busselton Jetty Incorporated

0

50,000

50,000

Reimbursement

State of Western Australia Balance of accumulated Interest on Busselton Foreshore Redevelopment Tourism Accommodation Precinct Project

0

52,888

52,888

Net Total

0

0

0

 

3.    “Recognition of Income – Stronger Communities Program”

 

The City has been successful in securing a grant for $13,685 from the Department of Infrastructure, Regional Development and Cities to install a female demountable change room at Bovell Oval.

 

This project has been developed in partnership with the Busselton and Districts Football Club to provide females with a change room for training and games.

 

The City has allocated $35k in this year’s budget and the club was successful in obtaining $35k from Community Bids. This takes the total budget to $83,685. The community bids funding will need to be transferred internally to the appropriate budget.

 

Planned Expenditure Items

The 2018/19 budget has an allocation of $35,000 for a women’s demountable change room at Bovell. To increase the size of the demountable the City secured an additional $13,685 in federal grant funding and a community bid of $35,000.

 

The amendments shown in Table 3 are being sought.

 

Table 3:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

332 B9604 1221 0000

Federal Grants Other

0

(13,685)

(13,685)

 

 

 

 

Expenditure

 

 

 

 

330 10530 3640 0000

Community Bids

237,930

(35,000)

202,930

332 B9604 3280 0000

Demountable Bovell

35,000

48,685

83,685

 

 

 

 

 

Net Total

272,930

0

272,930

 


4.    “Aged Housing Refurbishments”

 

The City maintain a community housing portfolio for low income tenants over the age of 55 comprising of two complexes.  One of the unit complexes is located in West Street and Adelaide Terrace (Winderlup Villas) and the other is Harris Road.  Both unit complexes are in Busselton.   The units were built in the late 80s and 90s and each time a unit is vacated it requires a varying degree of refurbishment.  Depending on when last tenant vacated and the type of works carried out historically, the cost can only be estimated, as can the number of units vacating during a single financial year.

 

As a result of a higher than expected number of vacated units at Winderlup Villas this financial year to date, the budget for capital expenditure has either been spent or is committed (or about to be) for the one of the two refurbishments at Winderlup and will suffer a deficit to fully refurbish the second unit.

 

In addition, as it is quite likely that before the end of the financial year another unit, either in Winderlup or Harris Road will vacate, the budget amendment request includes a contingency to cover the likely future refurbishment costs. 

 

The income currently derived for units in this location is in the region of $450-$500 per fortnight.  The refurbishments are carried out to a high standard to ensure compliance, longevity and best value for money.

 

The additional expenditure can be replenished from the Joint Venture Aged Housing Reserve which currently has a Budget closing position of $1,071,875 as at 30 June 2019. This reserve is set aside for this purpose.

 

The following is a list of the refurbishments carried out over the last three years.  This gives an indication of the fluctuating nature of the works and an indication of the frequency. 

 

·    Unit 16/6 Marine Tce, Busselton – Kitchen May 2016 - $5,697

·    Unit 18/6 Marine Tce, Busselton – July 2016 $11,346.70

·    Unit 1/5 Adelaide St, Busselton – Bathroom May 2017 $8,987.94

·    Unit 26/6 Marine Tce, Busselton – Mar 2018 - $25,036.12

·    Unit 2/21 West St, Busselton – Bathroom June 2018 - $7,877.50

·    Unit 17/6 Marine Tce, Busselton – Sept 2018 - $19,553.98

·    Unit 10/21 West St, Busselton – Dec 2018 - $16,911.97

 

Units 3 and 7/21 West St, Busselton are the recently vacated units for which refurbishments are in progress.  This budget amendment request includes a contingency for the refurbishment of at least one more unit before the end of the financial year.

 

Planned Expenditure Items

 

Officers propose that the 2018/2019 adopted budget be amended to reflect the changes shown in Table 4.

 


 

Table 4:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Equity Transfer

 

 

 

 

Reserve

Transfer From Joint Venture Aged Housing Reserve

-121,500

-35,000

-156,500

Expenditure

 

 

 

 

339-B9300-3280-0000

Capital – Winderlup Villas

60,000

35,000

95,000

 

Net Total

-61,500

0

-61,500

 

 

5.    “Port Geographe Finger Jetty Replacement”

 

Port Geographe is a level six (6) boat harbour and launching facility; the only regional boat-launching facility between Augusta and Bunbury. The facility currently includes a six (6) lane boat ramp and three (3) finger jetties. These finger jetties are in need of renewal.

 

The existing finger jetties are 0.62m wide, barely half the minimum width for finger jetties of 1.2m specified in the Department of Transport’s Guidelines for the design of boat launching facilities. An inspection of the jetties undertaken in 2010 found ‘rapid onset of rust’ in the intertidal zone. It was also reported that a number of existing chafers are damaged badly, wooden kerbs have rot and the steel ladders require replacement.

 

The proposed renewal will not alter the existing ramp dimensions and layout. Allowance to increase jetty widths is made by removing the gap between the inner kerb edge and jetty chafer, as is commonly done with floating jetties. This is done with the knowledge that launching ramps are 4.2m wide, above the minimum of 4m stipulated by Australian Standard - AS3962, with double kerbs between adjacent ramps.

 

The recommended project scope includes demolition of all three (3) existing jetty including cutting of six (18) existing piles, installation of nine (9) new piles and floating jetty and widening of the jetty approach. Six (6) new piles will be installed, and positioned along the edges such that the minimum width reduces to 1.4m, and three (3) piles at the ends. The potential exists to refurbish and reuse the last pile of each jetties, this will however only be determined once the existing piles are being removed, toe stablish overall conditions and remaining useful life of these piles.

 

The City received grant funding from the Department of Transport, Recreational Boating Facility Scheme program to the value of $165,000 to fund the renewal of one of the jetties. This amount was further augmented by the City to the value of $55,000 for a total budget allocation for the project of $220,000 as reflected in the 2018/2019 FY Budget.

 

Tenders were called for the replacement of these jetties as per RFT17/18 - PORT GEOGRAPHE FINGER JETTY REPLACEMENT. The tender was drawn up in a manner that the City can opt to award separable portions 1-3. For the purposes of this award, City Officers will opt to award separable portion 1 -3, subject to the Council endorsing this budget amendment.

 

The City received very competitive tender rates with the lowest tendered price for the contract being for the Contract is a lump sum value of $179, 356.07 to replace one (1) finger jetty. The price to replace two (2) finger jetties will be $325,351.91 after a $33,651.21 discount, and the price to replace all three (3) finger jetties will be $470,809.68 after a $67, 302.42 discount.

 

The second lowest submission received for Separable Portion 1 was $112,820.03 more expensive than the lowest price received. The price submitted to replace one (1) finger jetty was $292,176.10. The price to replace two (2) finger jetties was $460,445.16 after a 16% ($87,703.85) discount.


The price to replace all three (3) finger jetties was $578, 967.91 after a 28% ($225,154.18) discount.  Therefore, a difference of $108,158.23 or 23% more than the lowest tender price received.

 

City officers have briefed the Finance Committee at its meeting held on Thursday 17 January 2019, to suggest that consideration be given to a budget amendment that will allow for the replacement of all three (3) the finger jetties based on capital funding being reallocated within the existing 2018/19 Capital Budget.

 

Planned Expenditure Items

The 2018/19 budget has an allocation of $220,000 for the replacement of one (1) finger jetty at the Port Geographe Boat Ramp. To increase the number of finger jetties to be replaced an additional $250,810 will be required.

 

Officers propose that the 2018/2019 adopted budget be amended to reflect the changes shown in Table 5.

 

Table 5:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Equity Transfer

 

 

 

 

Reserves

Transfer From New Infrastructure Development Reserve

-1,470,740

-250,810

-1,721,550

Expenditure

 

 

 

 

510.C1512.3280.0000

 

220,000

250,810

470,810

Net Total

-1,250,740

0

-1,250,740

 

CONCLUSION

 

Council’s approval is sought to amend the budget as per the details contained in this report. Upon approval the proposed works will be planned, organised and completed.

 

OPTIONS

 

The Council could decide not to go ahead with any or all of the proposed budget amendment requests.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Should the Officer Recommendation be endorsed, the associated budget amendment will be processed within a month of being approved.

 


 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That Council endorse the requested budget amendments outlined in tables 1 to 5 below, resulting in no change to an amended budgeted surplus position of $0.

 

Table 1:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Expenditure

 

 

 

 

528-11402-7723-0000

Community Amenities (Waste disposal)

1,927,000

20,000

1,947,000

 

 

 

 

 

Income

 

 

 

 

528-11402-1770-0000

Proceeds from Sale of Asset

-55,000

20,000

-35,000

528-11402-1771-000

Profit on Sale of Assets

55,000

-20,000

35,000

Equity Transfer

 

 

 

 

Reserve

Reduction in Transfer to Waste Management Facility and Plant Reserve

1,579,702

-20,000

1,559,702

 Net Total 

3,506,702

0

3,506,702

 

Table 2:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Income

 

 

 

 

Equity Transfer

Restricted Assets – Interest on Government Grants

-80,000

-22,888

-102,888

Expenditure

 

 

 

 

B9600

Old Lighthouse

80,000

-80,000

0

Grant/Donation

Busselton Jetty Incorporated

0

50,000

50,000

Reimbursement

State of Western Australia Balance of accumulated Interest on Busselton Foreshore Redevelopment Tourism Accommodation Precinct Project

0

52,888

52,888

Net Total

0

0

0

 


 

Table 3:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

332 B9604 1221 0000

Federal Grants Other

0

(13,685)

(13,685)

 

 

 

 

Expenditure

 

 

 

 

330 10530 3640 0000

Community Bids

237,930

(35,000)

202,930

332 B9604 3280 0000

Demountable Bovell

35,000

48,685

83,685

 

 

 

 

 

Net Total

272,930

0

272,930

 

Table 4:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Equity Transfer

 

 

 

 

Reserve

Transfer From Joint Venture Aged Housing Reserve

-121,500

-35,000

-156,500

Expenditure

 

 

 

 

339-B9300-3280-0000

Capital – Winderlup Villas

60,000

35,000

95,000

 

Net Total

-61,500

0

-61,500

 

Table 5:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Equity Transfer

 

 

 

 

Reserves

Transfer From New Infrastructure Development Reserve

-1,470,740

-250,810

-1,721,550

Expenditure

 

 

 

 

510.C1512.3280.0000

 

220,000

250,810

470,810

Net Total

-1,250,740

0

-1,250,740

  


Council                                                                                      40                                                                  13 March 2019

13.             Planning and Development Services Report

Nil


Council                                                                                      41                                                                  13 March 2019

14.             Engineering and Work Services Report

14.1           PROPOSED PERMANENT ROAD CLOSURE - PORTION OF DUNN BAY ROAD, DUNSBOROUGH

SUBJECT INDEX:

Thoroughfares

STRATEGIC OBJECTIVE:

Road networks that provide for a growing population and the safe movement of all users through the District.

BUSINESS UNIT:

Engineering and Facilities Services

ACTIVITY UNIT:

Land matters

REPORTING OFFICER:

Land and Infrastructure Officer - Andrew Scott

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Road subdivision and amalgamation plan  

  

PRÉCIS

 

This report recommends that a 205 square metre portion of Dunn Bay Road, Dunsborough, adjacent to Lot 3 on Diagram 27650 (238 Naturaliste Terrace, Dunsborough) is closed permanently as a public road.

 

The reason for closing a portion of Dunn Bay Road, is so that the land is available to use in a land exchange agreement with the owner of Lot 3, resulting in the widening of Naturaliste Terrace.

 

BACKGROUND

 

Lot 3 on Diagram 27650 (238 Naturaliste Terrace, Dunsborough) is a corner lot located at the intersection of Naturaliste Terrace and Dunn Bay Road, as shown at Attachment A.

 

As part of the Dunsborough Townscape Improvements Stage 4, City officers identified the need to widen a section of Naturaliste Terrace adjacent to Lot 3 by 205sqm, and found that an equivalent portion of Dunn Bay Road was not required for public road purpose (Attachment A).  After discussions with the owner of Lot 3, the City entered into an agreement to exchange the two areas of land.  The agreement is subject to the Land Administration Act 1997, particularly section 58 as it relates to the closure of roads.

 

STATUTORY ENVIRONMENT

 

Roads may be closed permanently under section 58 of the Land Administration Act 1997.  Section 169(2) of the same Act allows for available Crown land to be granted as consideration when land is being acquired for public works purpose (such as road widening).

 

RELEVANT PLANS AND POLICIES

 

The land exchange agreement plan is consistent with the Dunsborough Townscape Improvements Stage 4.

 

FINANCIAL IMPLICATIONS

 

A recent property valuation shows that the two portions of land are of the same value, so the net value of the exchange is zero.

 

Under the agreement with the owner of Lot 3, the City is responsible for costs associated with surveying and land transfers.  These costs fall within budget for the Dunsborough Townscape Improvement project.

 

Should the road closure not proceed, consideration for portion of Lot 3 required for road widening would be at an agreed and presently unbudgeted cash amount. 

 

LONG-TERM FINANCIAL PLAN IMPLICATIONS

 

There are no Long Term Financial Implications associated with the officer recommendation.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter aligns with and supports the Key Goal Area 5 – ‘Transport’ of the City’s Strategic Community Plan 2017 and more specifically Community Objective 5.2 – ‘Road networks that provide for a growing population and the safe movement of all users through the District’.

 

RISK ASSESSMENT

 

The risks associated with the proposal are considered negligible given the proposed closure does not affect vehicle traffic, pedestrian traffic or public utility services.

 

However, the risks of not proceeding with the proposal are greater as Naturaliste Terrace should be widened (near the intersection with Dunn Bay Road), and the amount of compensation payable for portion of Lot 3 would be subject to a new agreement with the owner of Lot 3 and is unbudgeted.

 

CONSULTATION

 

A notice of the proposal to close permanently a 205sqm portion of Dunn Bay Road, Dunsborough, was advertised in the Busselton-Dunsborough Mail on 17 October 2018.  Letters of the notice were distributed to owners and tenants of over 80 properties within the Dunsborough central business district located near the proposed road closure.

 

No submissions were received to the notice of the proposal.

 

Public utility providers were consulted as part of the Dunsborough Townscape Improvements Stage 4 planning, and officers found the infrastructure of the public utilities are and will be unaffected by the improvement plans.

 

OFFICER COMMENT

 

The City has entered into a land exchange agreement with the owner of Lot 3 (238 Naturaliste Terrace, Dunsborough).  Under the agreement, a 205sqm portion of Lot 3 required for road widening is to be exchanged for a 205sqm portion of Dunn Bay Road; the net value of the land exchange being zero.

 


 

The agreement gives the City an opportunity to acquire a 205sqm portion of the Dunsborough central business district at zero cost (apart from surveying and land transfer costs).  To proceed with the agreement, the 205sqm portion of Dunn Bay Road must first be formally closed as a public road, pursuant to the Land Administration Act 1997.  The Act requires that after a public consultation period, the Council resolves to make a formal request to the Department of Planning, Lands and Heritage (for the Minister for Lands) to close the road.

 

The portion of Dunn Bay Road proposed to be closed permanently (as public road) does not affect the constructed road or a shared path, so the flow of vehicle and pedestrian traffic will not be impacted.

 

CONCLUSION

 

To allow a land exchange agreement with the owner of Lot 3 to proceed (resulting in the widening of Naturaliste Terrace), the Council should endorse closure of a 205sqm portion of Dunn Bay Road adjacent to Lot 3.

 

OPTIONS

 

The Council might consider not closing the portion of Dunn Bay Road, Dunsborough, as proposed.  This option is not recommended as the City would need to find other ways of providing consideration for a portion of private land required for road widening purpose.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

A request for road closure may be made to the Department of Planning, Lands and Heritage within two weeks after the Council meeting minutes being confirmed.

 

OFFICER RECOMMENDATION

 

That the Council endorses:

 

1.    the permanent closure of a 205 square metre portion of Dunn Bay Road, Dunsborough, shown in Attachment A as “area of road land for closure” and shaded red; and

 

2.    a request being made to the Department of Planning, Lands and Heritage to close the portion of Dunn Bay Road described above, so that the land is made available as part of a land exchange agreement with the owner of Lot 3 on Diagram 27650.

 

 


Council

44

13 March 2019

14.1

Attachment a

Road subdivision and amalgamation plan

 

 


Council                                                                                      46                                                                  13 March 2019

15.             Community and Commercial Services Report

15.1           MARKETING AND EVENTS REFERENCE GROUP MEETING OUTCOMES

SUBJECT INDEX:

Events

Regional Economic Development

Tourism Development

Sponsorship & Grant Applications

STRATEGIC OBJECTIVE:

Events and unique tourism experiences that attract visitors and investment.

BUSINESS UNIT:

Commercial Services

ACTIVITY UNIT:

Events

REPORTING OFFICER:

Events Coordinator - Peta Tuck

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

A meeting of the Marketing and Events Reference Group (MERG) was held on Thursday 21 February 2019.  This report presents the recommendations from this meeting.

 

BACKGROUND

 

At the ordinary meeting of 13 April 2011, Council resolved (C1104/114) to endorse the implementation of a differential rating system whereby properties rated industrial and commercial across the City would directly contribute toward the City’s continued support of tourism, marketing and event activities.  The City also established a key stakeholders reference group, now known as the ‘Marketing and Events Reference Group’ (MERG), to make recommendations to Council with respect to the marketing and events budget allocations.

 

At its meeting of 22 June 2011, Council resolved (C1106/201) to introduce a 3% Differential Rate on industrial and commercial rated properties which increased overtime to 10% in 2016/2017. The proceeds from the differential rate are allocated towards events and marketing.

 

The 2018/2019 adopted budget for marketing and events totals $977,682. This excludes budget allocations for Leavers Week, administration, and events staffing.

 

A MERG meeting was held on Thursday 21 February 2019, with the following key matters presented;

 

·    update on events held since the last meeting on 15 October 2018 and upcoming major events;

·    single year and multi-year event funding applications for consideration for 2018/2019 and beyond;

·    consideration for the waiving of event and ground hire fees, and allocation of ground maintenance funds for new event ‘The Drop Festival’;

·    marketing funding applications for 2018/19.

 

This report provides recommendations on the proposed funding allocations.

 

STATUTORY ENVIRONMENT

 

There are no statutory considerations associated with the officer recommendation.

 

RELEVANT PLANS AND POLICIES

 

The officer recommendation is in line with the City’s Events Policy which provides event organisers with information on the event application and approval process and event sponsorship guidelines. 

 

FINANCIAL IMPLICATIONS

 

The 2018/19 adopted budget has an allocation of $977,682 for marketing and events, with a split of $677,682 for events, including $13,461 of unspent funds carried over from 2017/18, and $300,000 for marketing. 

 

Of the $300,000 marketing budget, $97,245 has been allocated to the City’s airport marketing reserve, leaving a balance of $202,755.  At the ordinary meeting of 24 October 2018 Council endorsed (C1810/216) the allocation of $55k towards various marketing initiatives, however due to the cancellation of the West Tech Fest Conference $149,755 remains in the 2018/19 marketing budget.

 

Funds already committed from the 2018/19 events budget for multi-year event agreements and the 2018/19 Events Sponsorship Program totals $677,682. However, due to the cancellation of two (2) sponsored events (Australian Big Wave Awards, Between The Lines Youth Literary Festival) and the foreshore sundowner events coming under budget, a total balance of $15,407 remains in the 2018/19 events budget.

 

LONG-TERM FINANCIAL PLAN IMPLICATIONS

 

The marketing and events budget utilises funds generated through the industrial and commercial differential rate, in line with the City’s Long Term Financial Plan.

 

STRATEGIC COMMUNITY OBJECTIVES

 

The officer recommendation primarily aligns with the following Key Goal Area/s and Community Objective/s of the City of Busselton’s Strategic Community Plan 2017:

 

Key Goal Area 4 – Economy: Diverse, Robust, Prosperous

Community Objective: 4.3  Events and unique tourism experiences that aid in attracting visitors and investment

 

It specifically aligns to the following Council strategy: Continue to promote the City as the destination of choice for regional events.

 

RISK ASSESSMENT

 

The officer recommendation does not introduce any risks identified as being of a high or medium level.

 

CONSULTATION

 

Consultation has been undertaken with MERG members with representatives comprising the Busselton and Dunsborough Yallingup Chambers of Commerce and Industry, Margaret River Busselton Tourism Association (MRBTA), Busselton Jetty Inc. and the City of Busselton.

 


 

OFFICER COMMENT

 

Supporting the development and attraction of new events throughout the year, the City’s Events Sponsorship Programme promotes the City of Busselton as an attractive event tourism destination for a range of events.  At a MERG meeting held 21 February 2018 a range of requests for events and marketing funding were considered as outlined below:

 

Requests for Funding – Events Budget

 

Five (5) requests for events funding have been received with three (3) single year requests totalling $25,300 for 2018/19 and two (2) multi-year requests totalling $170k commencing in 2019/20.

 

In line with the City’s Events Policy, the City’s events team evaluated applications applying the strategic funding guidelines of economic impact, strategic alliance to off-peak and cultural events, destination tourism, social benefits and environmental impact. Funding recommendations were made based on this.

 

MERG members discussed each application and recommend a total of $5,400 be allocated from the 2018/19 events budget for single year events:

 

Applications for funding through 2018/19 Events Budget

Event

Event Dates

Proposed Use of Funding

Requested

MERG Recommendation

WA State Country Water Polo Championships 2019

1-3 March 2019

Promotion, venue fees, referee fees, lifeguard fees

 

$3,300

$1,400

South West Festival of Football

22-27 April 2019

Event costs - venue hire, security, first aid, fencing

 

$10,000

$2,000

Down South MTB Festival

1-2 June 2019

Marketing, course signage upgrade, PA hire, coaching costs

 

$12,000

$2,000

TOTALS

 

 

$25,300 

$5,400   

 

MERG recommends a total of $135,000 be allocated from the events budget for multi-year funding agreements commencing 2019/20:


 

 

Applications for funding for multi-year events

Event

Event Dates

Proposed Use of Funding

Requested

Officer Recommendation

Cabin Fever

19-28 July 2019

Marketing & PR, signage, increased marketing into Perth, media & famils, activiation of Queen Street.

$20,000 2019/20

$20,000 2020/21

$20,000 2021/22

$15,000 2019/20

$14,000 2020/21

$13,000 2021/22

CinefestOZ

28 August  - 1 September 2019

Continued development as premiere Australian destination film festival. Funding utilised for the Festival hub, catering and volunteers program, marketing & publicity, and event expenses.

 

$150,000 2019/20

$150,000 2020/21

$150,000 2021/22

$120,000 2019/20

$120,000 2020/21

$120,000 2021/22

TOTAL (2019/20)

 

 

$170,000 2019/20

$135,000 2019/20

 

Request for fee waiver – The Drop festival

 

The City was approached by Macro Music as Western Australian promoters for The Drop Festival, a nation-wide touring music festival appearing in Newcastle, Manly, Coolangatta and Torquay. Promoters expressed interest in bringing the festival to Busselton on Saturday 1 June 2019, as the ‘official concert’ for the Margaret River Pro surfing event. Promoters sought financial assistance from the City through the waiving of standard ground hire and event fees, the request of which was circulated to MERG members and Councillors in January 2019 with no objections received. Based on the projected attendance of 8,000 – 10,000, the total of requested waived fees is $18,004. Should Council endorse the officer recommendation the event will be contracted and deliverables will be determined.

 

MERG recommended that $10k be transferred from the 2018/19 events budget to the parks and gardens events maintenance budget to ensure there is sufficient funds for ground maintenance post event.  This estimate is based on information provided by the City’s parks and gardens team. Any further maintenance costs will be retained from the applicant’s bond.

 

Proposals for the 2018/19 Marketing Fund

 

There were two (2) marketing proposals received for funding from the 2018/19 marketing budget:

 

·    update of Busselton entry billboard backing

·    Our Town proposal.

 

Update of Busselton entry billboard backing

The backing board of the large billboard situated on Bussell Highway adjacent to the Bovell Sporting Complex is visible between event billboard bookings and has not been updated since the billboard was first erected in 2013. A new backing board provides an opportunity to promote the City to passing motorists, using updated and inviting images of the district. Quotations have been received for the replacement of the backing panels totalling $6,170. Artwork is an additional cost of $1,500 which MRBTA will fund.

 

MERG members discussed the merits of the proposal and requested City officers research alternate options for the billboard including costs associated with a rotating board or its replacement of an electronic billboard.

 

Our Town proposal

The City has been approached by Visage Productions to be involved in an episode of the Our Town television series.  Our Town is a 10 episode series broadcast throughout Western Australia on Channel 7 in a weekend afternoon timeslot.  The aim of the series is to promote why people should visit, live, work, play and invest in regional and metropolitan locations.  Each episode is allocated to a particular town or region, with possibilities for multiple-town collaborations.  Episodes run for 30 minutes and feature the organisations, companies, projects and people that are involved in the development of the region and can be used for marketing purposes. The City previously participated in the series as a stand-alone location in 2014. 

 

Following discussions with Visage Production they have advised that they require a contribution of $20k from the City for the production, which would be combined with a contribution of $20k from developers and tourism operators. An option to partner with the Shire of Augusta Margaret River was discussed with Visage Productions which would reduce the City contribution, however would also significantly dilute the City’s coverage.

 

Given the number of projects and developments undertaken in recent years, and the opportunities the region presents MERG recommends the allocation of $20k towards the proposal.

 

CONCLUSION

 

MERG has been assigned by Council to make recommendations on the way in which funds raised through the industrial and commercial differential rate for the purposes of events and marketing are allocated.  This report contains the recommendations made at the 21 February 2019 MERG meeting, which if endorsed by Council, will result in the continuation of high quality events being held within the region, supported by successful marketing promotions.  All recommendations support Council’s vision of being recognised as the ‘Events Capital WA.’

 

OPTIONS

 

Council may choose not to support the recommendations made by MERG and resolve not to endorse part or all of the recommendations.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Following Council’s decision, the outcomes will be communicated to MERG members and relevant event/marketing bodies for their information and implemented where required.


 

 

 

OFFICER RECOMMENDATION

 

That Council;

 

1.    As part of the 2018/19 Events Sponsorship Program endorses the funding allocation towards the following events, to be funded from the 2018/19 events budget:

 

Event

Funding

WA State Country Water Polo Championships 2019

$1,400

South West Festival of Football

$2,000

Down South MTB Festival

$2,000

TOTALS

$5,400   

 

 

 

 

 

 

 

2.    As part of the Events Sponsorship Program endorses multi-year funding allocations towards the following events, to be funded from the events budget commencing 2019/20:

 

Event

Funding

Cabin Fever

$15,000 2019/20

$14,000 2020/21

$13,000 2021/22

CinefestOZ

$120,000 2019/20

$120,000 2020/21

$120,000 2021/22

TOTAL (2019/20)

$135,000 2019/20

 

3.    As part of the 2018/19 events budget endorses the fee waiver for The Drop Festival and the transfer of $10k from the City’s 2018/19 Events Budget to the Parks and Gardens events maintenance budget.

 

4.    Endorses the allocation of $20k towards the Our Town proposal, to be funded from the 2018/19 Events Marketing Budget.

 

 

  


Council                                                                                      52                                                                  13 March 2019

16.             Finance and Corporate Services Report

16.1           COUNCILLORS' INFORMATION BULLETIN

SUBJECT INDEX:

Councillors' Information Bulletin

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Governance Services

ACTIVITY UNIT:

Governance Services

REPORTING OFFICER:

Administration Officer - Governance - Kate Dudley

AUTHORISING OFFICER:

Director Finance and Corporate Services  - Tony Nottle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   State Administrative Tribunal Reviews  

  

PRÉCIS

 

This report provides an overview of a range of information that is considered appropriate to be formally presented to the Council for its receipt and noting. The information is provided in order to ensure that each Councillor, and the Council, is being kept fully informed, while also acknowledging that these are matters that will also be of interest to the community.

 

Any matter that is raised in this report as a result of incoming correspondence is to be dealt with as normal business correspondence, but is presented in this bulletin for the information of the Council and the community.

 

INFORMATION BULLETIN

16.1.1    State Administrative Tribunal Reviews

 

Attachment A is a list showing the current status of State Administrative Tribunal Reviews involving the City of Busselton.

 

 

OFFICER RECOMMENDATION

 

That the items from the Councillors’ Information Bulletin be noted:

·    16.1.1              State Administrative Tribunal Reviews

 

 

 


Council

53

13 March 2019

16.1

Attachment a

State Administrative Tribunal Reviews

 

 


Council                                                                                      55                                                                  13 March 2019

17.             Chief Executive Officers Report

Nil

18.             Motions of which Previous Notice has been Given

Nil  

19.             urgent business

20.             Confidential Matters

The reports listed below are of a confidential nature, in accordance with section 5/23(2) of the Local Government Act 1995. These reports have been provided to Councillors, the Chief Executive Officer and Directors only.

RECOMMENDATION

 

That the meeting is closed to members of the public to discuss the following items which are confidential for the reasons as shown.

20.1           Amendments to kerbside recycling contract

This report contains information of a confidential nature in accordance with Section 5.23(2(c) and Section 5.23(2(e)(iii) of the Local Government Act 1995, as it contains information relating to a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting and a matter that if disclosed, would reveal  information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government

 

21.             Closure